Strategic Trader Alert: Bringing in More Income on Take Two Interactive

Consumer confidence numbers released today are still very strong based on optimism about the economy.

ALERT Jun 29, 2021   Bringing in More Income on Take Two Interactive Dear Savio, Consumer confidence numbers released today are still very strong based on optimism about the economy. Despite rising housing prices (largest jump in nearly 30 years), the economic outlook is still positive without too much panic about inflation. Overall, the summer doldrums are turning into a nice opportunity for bringing in extra income. Because the market has been a little slow this week, we want to cover Take Two Interactive (TTWO) a little earlier than we have the last two times we sold calls. The stock's price has just reached the bottom of the "double top" technical pattern that emerged earlier this month, and the likelihood for a consolidation or even a short-term dip is high. Therefore, we recommend you... Use a limit order to 'sell to open' the TTWO July 23rd $192.50 Covered Call (TTWO210723C00192500) for a minimum price of $0.75. We aren't concerned about support breaking, so if there is a dip, we can buy the calls back and keep the short-term profits. That strategy has been working out very well for us over the last two months. Keep in mind that the volume in TTWO’s options is a little thin, so be patient about getting a fill on the calls. We recommend using a limit order and letting the market come to us as the stock fluctuates. Here's How the Trade Can Work Out… Instant income: With this covered call, we plan to collect an instant income payment of at least $75 per contract. Calls expires out of the money: If TTWO's stock price remains below our $192.50 strike price at expiration on July 23, the calls will expire worthless, allowing us to keep the $75 per contract we receive for selling this option. That’s a return of 0.4% in just 24 days, or an annualized return of 5.9%. Calls expires in the money: If TTWO's stock price is above our strike price at expiration, you will have 100 shares of TTWO "called away" from you at $192.50 per share. Having the shares called away from us will then allow us to start selling put-writes against the stock in the future for additional income. If you do not want to have your shares called away from you, you will need to "buy back to close" the call before expiration on July 23. We’ll keep you posted as the trade progresses. Take Two Interactive (TTWO) common stock was trading for approximately $178.50 per share at the time of this alert. Long-Term Focused Strategic Positions: If you haven’t already entered the following and can still get in for a price at, or better than, our recommended minimum/maximum, we still recommend entering: Put Write: (Short) AAPL July 16th $132 Put Write (AAPL210716P00132000) for a minimum price of $1.05. Put Write: (Short) MSFT July 16th $255 Put Write (MSFT210716P00255000) for a minimum price of $1.05. Put Write: (Short) LOGI July 16th $120 Put Write (LOGI210716P00120000) for a minimum price of $1.60. Put Write: (Short) BAC July 9th $40 Put Write (BAC210709P00040000) for a minimum price of $0.42. Put Write: (Short) LUV July 2nd $57 Put Write (LUV210702P00057000) for a minimum price of $1.25. Covered Call: (Short) MU July 16th $90 Covered Call (MU210716C00090000) for a minimum price of $0.50. Covered Call: (Short) DIS July 16th $195 Covered Call (DIS210716C00195000) for a minimum price of $0.55. Covered Call: (Short) CHGG July 16th $85 Covered Call (CHGG210716C00085000) for a minimum price of $0.95. We are still holding the following strategic trades, but either the current value of the short option or the price action of the stock itself don't warrant entering a new trade at this time. If you haven't already entered these trades, we recommend waiting until further notice before opening a new position: Covered Stock: Take Two Interactive (TTWO) for a maximum of $197.50 -- part of the TTWO covered call position. Covered Stock: Micron Technology (MU) for a maximum of $88.00 -- part of the MU covered call position. Covered Stock: Disney (DIS) for a maximum of $195.00 -- part of the DIS covered call position. Covered Stock: Chegg (CHGG) for a maximum of $100.00 -- part of the CHGG covered call position. If put-writes and buy-writes are new strategies for you, be sure to check out our Resources page for more information. For more on these trades, be sure to attend our next weekly webinar Wednesday 8 p.m. ET. Sincerely, John Jagerson and Wade Hansen Editors, Strategic Trader   This message was sent to the following e-mail account: ootlesoliginya.blogpost@blogger.com at Jun 29, 2021 13:10:46.81 Executive Editors: John Jagerson and S. 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